ASML Holding Faces Potential Class Action Lawsuit Amidst Investor Losses and Misleading Statements

ASML Holding Faces Class Action Lawsuit

Investors in ASML Holding N.V. (NASDAQ: ASML) who acquired shares between January 24, 2024, and October 15, 2024, find themselves in a pivotal position as they can apply to become lead plaintiffs in a newly unveiled class action lawsuit. This lawsuit, known as City of Hollywood Firefighters' Pension Fund v. ASML Holding N.V., No. 24-cv-08664 (S.D.N.Y.), has emerged due to allegations that the company, along with several high-ranking executives, has infringed upon the Securities Exchange Act of 1934.

Allegations against ASML

The class action lawsuit details that ASML and its executives allegedly made numerous false or misleading statements throughout the specified Class Period. The essence of the claims involves severe misrepresentations about the challenges faced by suppliers in the semiconductor sector, which ASML failed to adequately disclose.

It is cited that ASML misrepresented their understanding of customer demand as well as anticipated growth while minimizing risks tied to macroeconomic and industry shifts. Furthermore, the introduction of stricter regulations on the export of essential semiconductor technology products, including those sold by ASML, was allegedly downplayed.

The Unfolding Situation

Turbulence arose for ASML on October 15, 2024, when the company divulged a quarterly booking of merely €2.63 billion, indicating a staggering 53% fall from the €5.6 billion they recorded in Q2 of 2024. ASML also revised their full-year net sales projection for 2025, anticipating figures to range between €30 billion and €35 billion—largely beneath the initially expected range of €30 billion to €40 billion. Compounding the issue, the company lowered its gross margin target from a range of 54%-56% to between 51% and 53%.

In the aftermath of these disclosures, ASML’s stock plummeted by more than 16%, highlighting the stark consequences of the provided information. The subsequent earnings call on October 16 saw ASML's CFO, Roger Dassen, attribute poor booking results to a slothful recovery in traditional semiconductor markets. ASML's CEO, Christophe Fouquet, further clarified that recovery in the semiconductor industry would likely extend into 2025, suggesting reduced growth for the coming year.

The fallout from these discussions led to an additional decline of over 6% in ASML’s stock prices.

The Path to Becoming a Lead Plaintiff

Under the Private Securities Litigation Reform Act of 1995, investors who purchased ASML ordinary shares during the given Class Period have the opportunity to become lead plaintiffs in this class action lawsuit. Typically, the lead plaintiff is identified as the investor with the most significant financial stake in the suit who also reflects the characteristics of the larger class of affected investors. This individual represents all other class members, guiding the lawsuit's direction and having the option to select their preferred law firm for litigation.

Being appointed as the lead plaintiff does not restrict an individual's ability to share in potential future recoveries from the suit.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is recognized as a leading law firm in successfully advocating for investors in securities fraud cases. The firm has consistently ranked number one for recovering the highest monetary relief for investors over the last decade. To date, Robbins Geller has reclaimed over $6.6 billion for investors across various securities-related class actions. With a formidable team comprising 200 lawyers working across ten offices, Robbins Geller is among the largest plaintiff-focused firms worldwide.

For more information on how to engage with this lawsuit or to contact the firm directly for further inquiries, please explore their official webpage.

As this situation continues to develop, affected investors should remain informed and consider their potential involvement in this class action lawsuit to seek justice and recovery for their losses.